Public Service Company of New Mexico

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1 Public Service Company of New Mexico Open Transmission Planning Meeting November 2, 2017 Albuquerque, NM

2 INTRODUCTION Public Stakeholder Meeting Order 890 Objective to improve transparency and stakeholder involvement. Planning Process Defined in Attachment K of OATT March Meeting Reviewed Planning Process Coordination with WECC (PCC & TEPPC), WestConnect PNM 10-Year Plan Study Scope November Meeting Review 10-Year Plan Results Input to Next Planning Cycle Certain Other Business 2

3 10-YEAR TRANSMISSION PLAN 3

4 10-YEAR TRANSMISSION PLAN OBJECTIVES OF STUDY EFFORT: Support Data Base Development for PNM and Regional Studies 2019 (1-yr), 2022 (5-yr), 2027 (10-yr) Maintain Reliability Define Transmission for Native, Network and Point-Point Customers Incorporate Plans Developed Through FERC Processes, NM IRP and Regional Planning Analysis 4

5 STUDY SCOPE Review transmission adequacy with retail and network customer updates to designated network resources and load. Determine if system mitigations are needed to serve expected obligations (load forecasts and expected firm transfers) during the 10 year planning horizon without violating WECC/NERC reliability standards. Develop operational mitigations or system improvements to maintain system reliability and associated cost estimates and schedule. Incorporate assessments of economic congestion to the extent a need is identified by PNM s or other s involvement in the WECC process for providing this type of assessment. 5

6 PROJECT DRIVERS Compliance with Reliability Standards Provide Service to New Load Locations Interconnection Projects Recommendations for projects requiring joint study or solutions 6

7 Project Overview 7

8 Northern New Mexico Projects Northern New Mexico Completed Project Planned Project Yah-Ta-Hey Transformer (ISD 2017) Richmond Station (ISD 2017) 8

9 Southern New Mexico Projects Southern New Mexico Alamogordo Voltage support Phase 2 (ISD 2022+) Completed Project Planned Project 9

10 COMPLETED RELIABILITY PROJECTS Richmond Switching Station 2 nd Yah-Ta-Hey Transformer 10

11 None RELIABILITY PROJECTS UNDER CONSTRUCTION 11

12 PLANNED RELIABILITY PROJECTS 12

13 ALAMOGORDO VOLTAGE SUPPORT PHASE 2 In-Service Date: Purpose Provide adequate voltage support and operational flexibility by increasing the transmission load serving capability. Project includes Installation of an additional switchable shunt capacitor Carrizo Holloman Dona Ana Amrad Load Tularosa 13

14 OTHER PROJECTS 14

15 OPERATOR OR RAS SOLUTIONS Only Local Area Impacts Certain N-2 overloads addressed by RAS or Operator action. Generation Re-dispatch Load Shedding Capacitor switching Transformer Tap Adjustments 15

16 Interconnection and Transmission Service Projects 16

17 Interconnection and Transmission Service Related Projects Generator Interconnection El Cabo Wind Farm interconnection at Clines Corners completed Spring Wire-Wire Interconnections Blackwater Expansion for Western Interconnect Tie completed Cabezon Switching Station Transmission Service Projects Guadalupe SVC 2018 Blackwater Synchronous Condenser 2019 Albuquerque-Clines Corners 345 kv Line late

18 El Cabo Wind Farm 18

19 Blackwater 345 kv Switchyard Expansion Expand to a 3 breaker ring bus configuration to accommodate an interconnection to Western Interconnect line. Western Interconnect transmission line will interconnect Broadview and planned Grady wind generation facilities. In-service date December 2016 (Broadview) 19

20 Blackwater Station Expansion 20

21 Cabezon Switching Station 33 miles north of Rio Puerco on the San Juan Rio Puerco 345 kv transmission line. A 3 breaker ring that provides a new delivery point Tristate G &T under the Network Transmission Service Agreement. Tristate will provide a 345 to 115 kv transformer which ties into the Algodones La Jara 115 kv line segment. In-service spring of

22 Wires to Wires Interconnections 22

23 Guadalupe SVC Size: -100 to +250 MVAR Voltage support for transmission service provided to Pattern and Avangrid. Guadalupe Switching Station expanded to four terminations to accommodate SVC in-service date. 23

24 Guadalupe SVC 24

25 Blackwater Synchronous Condenser 25

26 Proposed Clines Corners-Albuquerque 345 kv Line 26

27 10-YEAR PLAN QUESTIONS? Ten-Year Plan Report Available for Stakeholders completing CEII Request 27

28 2017 STUDY PLAN INPUT March Meeting to Review 10-Year Plan Scope Discussion 28

29 Large Generator Interconnection Cluster Activity Six Definitive Cluster closed August 10 th, 2015 Two requests of 120 MW are in LGIA negotiations. One requests of 38 MW is in FACS study mode Seventh Definitive Cluster closed May 6 th, MW is in LGIA negotiation. Eighth Definitive Cluster closed January 31, 2017 Twelve requests of 1250 MW in SIS study mode Seventh Preliminary Cluster closed June 2, 2017 One request of 50 MW in SIS study mode Ninth Definitive Cluster Closed October 30 th Reviewing requests, will be posted on oasis. 29

30 Next Cluster Window Definitive Interconnection Cluster Window opens April 29 th, 2018 and closes July 27, 2018 Preliminary Interconnection Cluster Window opens November 30th th, 2017 and closes February 27,

31 SunZia REGIONAL ACTIVITIES Permitting activities Ongoing Commercial operation date in late Lucky Corridor Project modified to single 345 kv line from Gladstone area to Ojo switching station Completed WECC Project Coordination Review Group report Mora Line Project Lucky Corridor's Mora Line project is designed to carry 180 MW at 115 kv. 102 miles Working on Facilities study with PNM 31

32 REGIONAL ACTIVITIES Southline Project WECC Rating Process Completed March 23, 2015 Construction expected to begin in 2018 In Service Date: In phase between 2018 and 2020 August 2017 Fact Sheet Available on website: Centennial West Clean Line Project See project website for latest developments. Western Spirit Clean Line Project Approximately 1000 MW 345 kv Project to increase access from Central New Mexico to the Four Corners hub. Facilities Study for interconnection to PNM completed in September

33 REGIONAL ACTIVITIES Verde Project Interconnects to PNM s Ojo and Norton 345 kv stations System Impact Study completed in March 2017 Expecting completion of Facilities Study November Permitting, Public Engagement, ROW, Engineering Construction, In Service Date

34 Map of Regional Transmission Projects 34

35 ORDER 1000 UPDATE Adds planning process for identifying regional projects that are more cost effective and efficient than projects in local plans. Establishes cost allocation methodology for regional projects. Full Biennial Cycle mostly complete No regional projects identified. Current Activities: Annual Stakeholder meeting November 16 th Tempe, AZ Start discussions for scoping Biennial Planning Cycle 35

36 NEXT MEETING March 1,

37 QUESTIONS OR COMMENTS? Tom Duane

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